ISLAMABAD: Crude oil prices went down around 3 percent on Tuesday as concerns about the US debt ceiling pact and OPEC+ meeting, which is taking place on Sunday, cooled the market’s risk-on sentiment. As of 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $2.40 (-3.11 percent) to reach $74.67. The West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $2.15 (-2.96 percent) to $70.52. The price of Russian Sokol decreased by $0.76 (-1.14 percent) to $65.62. Arab Light prices witnessed a decrease of $1.07 (-1.36 percent) to reach $77.56 a barrel. TLTP
The price for Opec Basket decreased by $0.55 (-0.71 percent) to $76.94. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey.
US President Joe Biden and top congressional Republican Kevin McCarthy over the weekend forged an agreement to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years. Both leaders expressed confidence that members of the Democratic and Republican parties will vote to support the deal. However, a handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise the United States’ $31.4 trillion debt ceiling. There is skepticism that the debt ceiling deal might still be derailed during congressional hearings.
On the other hand, OPEC+ member states are sending mixed signals before their meeting this Sunday and this is keeping the oil markets on the edge. The oil companies have been restarting operations amid slowing wildfires in Canada’s most oil-prolific province Alberta, with at least 90,000 barrels per day of the 400,000 barrels per day of previously shut-in production now back.
